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Biden and Fed Chairman Powell to discuss inflation crisis on Tuesday According to Reuters


© Reuters. FILE PHOTO: U.S. President Joe Biden announces nomination of Federal Reserve Chairman Jerome Powell for a second 4-year term and Federal Reserve Board member Lael Brainard as vice chairman, as Powell standing in the Eisenhower Executive Office

By Jarrett Renshaw

(Reuters) – U.S. President Biden will meet Federal Reserve Chairman Jerome Powell on Tuesday as historic inflation continues to drain Americans’ pockets.

The meeting, the first since Powell’s confirmation for a second term in the Senate, comes as Biden seeks to reduce the cost of gasoline, food and consumer goods that have pushed inflation to a 40-year high.

Inflation is just one of many crises facing the White House, from gun violence to Russia’s invasion of Ukraine.

Biden will congratulate Powell on his confirmation, discuss the US and global economy and the president’s top priority is “addressing inflation to transition from historic economic recovery to growth”. stable, stable suitable for working families,” a White House official said.

The Fed has raised interest rates by three-quarters of a percentage point this year and plans to raise rates by another half a percentage point at each of its next two meetings, with the possibility of more rate hikes after that.

The Powell-led Fed has been criticized by some economists for being slow to tackle high inflation by ending emergency support for the economy and starting to raise interest rates.

In a Wall Street Journal opinion piece published Monday, Biden said the Federal Reserve’s primary role is to control inflation.

Biden said “his predecessor downplayed the Fed, and past presidents have inappropriately sought to influence its decisions during times of high inflation. I’m not going to do this.” “

U.S. consumer price growth slowed sharply in April as gasoline prices fell to record highs, suggesting inflation may have peaked, although it is likely to continue to heat up for a while. and caused the Federal Reserve to hold the brake pedal to cool down demand.

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